China reroutes clothes exports to Europe after US tariffs upset trade as Chinese companies selling in ‘aggressive’ way, European textile industry says (www.ft.com)

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China’s textile exports into the EU have surged as manufacturers hit by heavy US tariffs redirect goods to Europe, the European textile industry body has said.

EU imports of Chinese clothing and textiles increased by 20 per cent in value and volume in the first half of 2025, compared with last year, according to Euratex data shared with the Financial Times. The majority of the value increase came from an approximately €2bn rise in cheap clothing imports.

“We are talking about this tariff war and we see that China is exporting less to the USA,’’ said Mario Jorge Machado, president of Euratex.

‘‘We see a significant amount of it exported to Europe but [it] also connects with a decrease in price in the articles we are importing.” “The Chinese companies, because they cannot sell in the United States, are behaving in a very aggressive way to sell in Europe.”

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The European Commission has proposed scrapping its €150 de minimis threshold, below which parcels can be sent to the EU duty-free, and charging a flat €2 fee on packages with a value under €150 instead. Member states must agree on the change before it becomes law.

The US scrapped its own de minimis regime in August. Shippers face a minimum $80 fee on packages into the US. “We are comparing for the same package €2 to $80,” Machado said, describing the EU’s effort as “ridiculous”.

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At the same time, the value of exports from the EU to China fell 19 per cent, driven by a fall in the prices of clothing in Europe due to competitive pressure and a weaker yuan against the euro.

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Policymakers have been on high alert for signs of Chinese dumping of goods in the EU, which could push down inflation. Europe has also been hit by a surge in steel imports diverted from the US because of high tariffs.

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The EU textile industry accounts for €170bn in annual turnover and 1.3mn jobs.

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